IL&FS signs concession agreement with Jharkhand Govt.

IL&FS Transportation Networks today said its subsidiary has signed a concession agreement with the Jharkhand government for development of six-laning of Ranchi Ring Road at an estimated cost of INR 587.60 crore.

IL&FS-signs concession agreement with Jharkhand Govt.

“The concession agreement for development of six-laning of Ranchi Ring Road, section VII from Kathitanr to Karma comprising 23.575 kms, has been signed by Jharkhand Infrastructure Implementation Co, a subsidiary of the company, with the Jharkhand government on a build-operate-transfer (BOT) basis on August 7, 2015,” the company said in a BSE filing.

It further said: “The estimated cost of the project is Rs 587.60 crore. The company shall receive annuity of Rs 111.64 crore per annum upon completion of the project.”

IL&FS Transportation Networks said the project is on an annuity basis with a concession period of 17.5 years, including construction period of 2.5 years.